Since 2024, layoffs in the gaming industry have made a lot of headlines. From big studios to small ones, there have been noticeable job cuts affecting the lives of thousands of people across the globe. And the layoffs wave doesn’t seem to be slowing down in 2026 either. Epic Games, the maker of the massively popular multiplayer title Fortnite, just announced its plans to let go of 1,000 people. The news was shared in a note with employees that has now been shared on the company’s website. Here’s all about what is happening at Epic.
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Epic Games decides to cut 1,000 roles
CEO Tim Sweeney shared a note with employees on Tuesday, saying that they will hand over the pink slip to 1,000 employees.
The note read, ‘Today we’re laying off over 1,000 Epic employees. I’m sorry we’re here again. The downturn in Fortnite engagement that started in 2025 means we’re spending significantly more than we’re making, and we have to make major cuts to keep the company funded. This layoff, together with over $500 million of identified cost savings in contracting, marketing, and closing some open roles, puts us in a more stable place.’
He then added that there were two reasons for this: the challenges that the entire games industry is facing and some that are ‘unique to Epic’.
‘Despite Fortnite remaining one of the most successful games in the world, we’ve had challenges delivering consistent Fortnite magic with every season; we’re only in the early stages of returning to mobile and optimizing Fortnite for the world’s billions of smartphones; and in being the industry’s vanguard we have taken a lot of bullets in a battle which is only in the early days of paying off for ourselves and all developers,’ his note read.
What will the laid-off employees receive?
The employees who have lost their jobs as part of the latest job cut will be receiving at least four months’ base pay as severance. The rest of the amount will be based on an employee’s tenure. Moreover, the company will also extend the employees’ healthcare coverage. Sweeney also mentioned that employees based out of the US will receive ‘paid coverage for 6 months’.
He added that employees’ stock options (shares they were promised but not yet fully earned) will also vest faster. This means that by January 2027 they will fully own the options that would have taken longer to earn. And after leaving, the employees will have up to two years to decide whether to buy the vested stock options, instead of the usual short window (often 90 days).
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